ING: Exorbitant Early Repayment Fees > $6600

[computerflyer]

Unless your wife had a binding beneficiary on file (must be filed every 3-years to be valid), the trustee can pretty much do whatever it likes with a super estate. Search on the net for binding and non-binding beneficiaries for some insight. For non-binding, "payment will be made at the discretion of the Trustee."

The Trustee could determine that a future trust income for a special needs child when they are adult outweighs your immediate need - assuming you are a working person, whether struggling or not.

This would not have happened if there was a binding and current beneficiary on file, naming you. Good luck managing your circumstances.

[Mystic]

My late wife had a superannuation policy with ING, with a cover of $50k insurance. When she passed away I was left with a $100k mortgage and our 3 year old son to raise.

But after all the paperwork between myself and ING, they then asked for the contact details of her mother who was never a dependant, received letters from her solicitor and you guessed it ING gave the money to the maternal grandmother, we have asked the Super Complaints Tribunal for help but no success.

Do any of the legal or insurance guys on here have any suggestions, the Maternal Grandmother put it in trust until he turns 25, he is a special needs child and needs the extra income now.

[TheLoanMan]

Curly 22 & dibouski, what you say is fine unless the reason you want to repay the loan early is to refinance to another bank or to sell the house, because if you still have a debt reqardless of how small the bank will not release the mortgage until the loan is paid in full.

I dont agree with the exit fees charged by the banks, as they are meant to stop you refinancing.

The Deputy Prime Minister, has been going on about this for ages, but nothing will happen because you have to prove that the fee is unreasonable, and how do you do that? The banks argue that they are covering their costs in the initial setup of the loan, and how does Joe Public prove otherwise. If this fee quoted by pianoman was right (and I doubt it is because of the lack of followup information), then they would have a case that the fee is unreasonable, but the ACCC seem happy with the current exit fees charged by most of the banks.

Until the Government ban exit fees outright, the current legislation is just a toothless tiger. The Government has no appetite to take on the banks. If you think they got a mauling from the mining industry, the banks would distroy any government who took them on.

[Curly22]

We did it similarly to 'diboouski ' : 8 yrs ago we needed a 'bridging loan' for a year, but could only find a loan that needed to run over 4 yrs with a $1000 fee for paying it out early. We paid back as much as possible in the shortest time, and finally had $50 owing, and another year to go. The Building Society just let it run - and so did we; they still posted statements....

[dibouski]

In the good old bad old days (you know, 17% interest etc) I had a similar 'issue' when I wanted to pay out my home loan early. My building society had been taken over by one of the Big 4 & had similar payout figures - all well documented in the fine print & legit by the way!

What I did was pay down the loan amount so that the account remained open but the interest/loan payment was so low that the bank asked me to close the account.

Try paying all but a $1 off thereby leaving the account open & watch what happens.

[TheLoanMan]

The thing that concerns me about this post is that pianoman posted on 20/7 and was asked to advise what sort of loan he had, and todate a week later, has not replied. If we know what sort of loan he has, we can verify if his information is correct.

On current loans ING have, the early termination fees as quoted by Biddleonia007 are correct, and the facts as presented by pianoman without the benefit of further clarification do not appear correct.

Whilst I am no friend of the Banks I refuse to bag them unless I have all the facts.

If pianoman can clarify what sort of loan he has, we can then confirm whether his information is correct and perhaps help him to resolve the problem, but without further clarification, the facts as he states them are different to the way it is.

[Biddleonia007]

mrbean, please ensure your facts are correct before posting! ING has NOT been taken over by one of the big 4, ANZ purchased the life insurance and superannuation divisions from ING, but ING's lending and deposit side is still very much independent and owned by ING which is Dutch owned.I am a mortgage broker and ING is very competitive and active in the home lending space AGAINST the big 4. In relation to eraly payout fees, not sure where the $6,600 comes from. If you are on variable rate, the fees (on average) are a sliding down scale for early payout viz $1,400 1-12 months, $1,050 13-24 months, $700 25-36 months and $350 37-48months. After 48 months there is no early payout fee, only lender costs to process any discharge. Sure you arent confusing a fixed rate early break cost? If you disclose your laon type, I will happily recheck my facts above (there may be an older laon with early payout fees, but I doubt it).

[skip77]

Hi Pianoman
You can lodge a complaint through the banks own dispute service area and if you don’t get a satisfactory response you can lodge a complaint with the Financial Ombudsman Service. They can help to work through the dispute and assess whether the bank has acted in accordance with their terms and conditions, the relevant codes or the law.

With the new unfair contracts legislation now in effect you should approach the bank and argue your case, particularly if you believe the fee is unreasonable, unjust and inadequately disclosed.

If you think the bank has breached the Code of Banking Practice you can also inform the Code Compliance Monitoring Committee (CCMC) who monitor and investigate any potential breaches of the Code. (www.codecompliance.org) Their job is to make sure the banks comply with the code.
Good luck

[misterbean]

Thanks for the warning !
Can't remember which one of the Evil 4 Australian banks took over ING But seems it hasn't taken long to get them into Australian bankings shape.
How on earth could this Government allow ING , Bankwest and St George be taken over and maintain that this would not adversely affect competition !

[NGE]

I have looked into repaying my home loan early.

The "Early Repayment Fees" would be $6,656.00 = to 1.3% of original loan amount.

I understand break costs for Fixed Rate loans, but this is variable.

Has anyone attempted to fight these charges before on the grounds that they exceed reasonable estimate of the credit provider's loss??

This is daylight robbery!

NGE Member: pianoman